An analysis said XRP needs to break above the $1.65 resistance level to confirm whether it has formed a bottom after its recent decline.

On Oct. 22 local time, blockchain media outlet The Crypto Basic reported that analyst Casi Trades presented $1.65 as a key resistance level for XRP in a post on X, formerly Twitter. She said reaching that price alone is not enough and that an actual breakout is needed to judge the recent low as a bottom.

XRP was rejected near $1.65 in September and has recently been trading around $1.33. The key support level on the downside is $1.27. It is the zone where the short-term Fibonacci retracement level of 0.618 overlaps with the Elliott Wave Theory target for wave 2.

Casi Trades assessed XRP's rebound after forming a lower wick at that support zone as an early sign of bottoming. The price later climbed back into the $1.33 area, above the first Fibonacci resistance level around $1.3040. She said bottoming is not something that ends in a single move and expected the market could retest the $1.27 support level several times before a full recovery.

Technical indicators have also yet to clearly support a trend reversal. The relative strength index, or RSI, is around 42.50, below the neutral line of 50. Although it has risen above the recent low, easing bearish pressure somewhat, the price remains below the prior sideways range. At recent levels, the trendlines also appeared to be converging.

Intermediate resistance levels are at $1.35, $1.41, $1.46, $1.53 and $1.58. XRP would need to clear those levels in sequence to attempt a break above $1.65.

Casi Trades said, from an Elliott Wave perspective, a break above $1.65 would confirm the end of the wave 2 correction. If it succeeds, the third wave of a smaller degree could unfold and target $2.40, the analysis said. She also left open the possibility of shifting into a larger uptrend and attempting to break the all-time high (ATH).

If the recent low breaks, the possibility of additional declines also remains. The next support zone on the chart is $1.08 to $1.10, and $0.87 was presented as a demand zone in case of a deeper drop.

In the short term, whether $1.27 holds is key, while whether XRP breaks above $1.65 is central as a standard for judging a trend reversal. Even if a rebound continues on support, it would need to break above resistance to meet the bottom-confirmation condition presented by Casi Trades.

ripple:native Will price break above $1.65 to confirm the bottom is in!? #xrpholders https://t.co/Yfvg0ZHAJ9